First round of Fuller v Cowell fight declared a draw

A bloodless skirmish took place today ahead of a multimillion pound legal battle between Pop Idol creator Simon Fuller and its star Simon Cowell.

The main action is expected to reach court early next year when Mr Fuller sues Mr Cowell over his new show, The X Factor, which he claims breaches an agreement between the two pop entrepreneurs.

Today Ronagold, a company set up in 2000 by Mr Cowell and German music company BMG to exploit records by the original Pop Idol stars, was due to bring an action against Mr Fuller's company, 19 Entertainment, after claims that it was seeking new record companies for future Pop Idol winners.

But the dispute was settled on "amicable" terms outside court, said a spokesman for Mr Fuller's company.

This action was believed to have been dropped after a new record agreement was negotiated between the two rivals.

Ronagold splits the profits from recorded music rights of Gareth Gates and Will Young with Mr Fuller, who was believed to get 50%.

This high percentage was justified, Mr Fuller claimed, because Pop Idol was central to the success of the stars.

Mr Fuller, who made his first fortune managing the Spice Girls, and Mr Cowell were once big friends.

They are believed to have fallen out after Mr Cowell's success as the acerbic judge of the Pop Idol series, which was exported to America as American Idol.

Mr Cowell's treatment of would-be stars brought him more fame and made the show a major hit on US television.